Lakshmi Vilas Bank comes under Sebi scanner for 'insider trading'

Based on an exchange's surveillance report, the regulator is examining trading in the scrip between 2018 and 2019

Capital markets regulator Securities and Exchange Board of India (Sebi) is examining Chennai-based Lakshmi Vilas Bank (LVB) for possible violation of disclosure norms, including insider trading rules, amid the controversy over the lender’s takeover by DBS Bank India.

According to sources, the markets regulator is scrutinising the surveillance report submitted by one of the stock exchanges, which suspected unfair trade practices and even flouting of insider trading norms by certain entities close to the erstwhile management of LVB.

“The report talks about the share transactions in the scrip of the lender in the period between 2018 and 2019, when the lender was